Loss-making Kenya Airways plans to retrench 600 workers starting May, four years after it fired 400 staff in a similar exercise.
In a statement on Thursday, the airline whose code name is KQ, said the move will help it reduce its costs as it seeks to turn around the airline's fortunes.
KQ made a historic loss of for the full-year period ending March 31, 2015 – the biggest loss ever in Kenya's corporate history.
"In light of the foregoing, we will embark on a restructuring process that will result in approximately 600 members of staff being declared redundant or redeployed elsewhere," KQ said.
The airline said the retrenchments are only 10 per cent of the turnaround programme dubbed Operation Pride, which it started late last year.
Under the programme the airline has also sold some of its
aircrafts
on the Boeing 777 fleet, rendering many pilots idle for months.
Sources told the Star Thursday that though the airline has already informed its various worker unions of the impending job cuts, it had not obtained approval from the pilots' union. The Star could not establish whether the other union for cabin crew and ground staff had approved the plan.
KQ said the redundancy process will comply with labour laws, Collective Bargaining Agreements and individual staff members’ contracts.
“The decision communicated above is not made lightly, and I want to thank all employees for their tremendous resilience and commitment in serving our guests in challenging times for the company. I am confident that with the support of all staff, unions, shareholders, creditors, financiers and all other stakeholders, Operation Pride will bring back the airline’s long-term profitability and reconfirm our position as the Pride of Africa,” group managing director Mbuvi Ngunze said.
KQ's direct operating costs for the last financial year rose by a modest one per cent to Sh76 billion from Sh75.3 billion in 2014.
